That is good news, and highly relevant to what I was saying to
Saoir just recently.
As I told Smashwords with each of my epub uploads: if I was uploading a Word document and letting their meatgrinder produce the epub then I would be happy to have it called the "Smashwords Edition" - since it is an epub that they produce. But when I'm uploading my own epub it seems silly to call it their edition - they've had nothing to do with it. (It works both ways: why would they want their name associated with something they didn't control beyond automatic vetting, and why would I want to flag my epub being the same that produced by the meatgrinder?)
Just two more things on my list of what I want from Smashwords:
1) A preview generated from the epub. Should be easy, I can't see why they haven't done it already.
2) A Kindle version generated from the epub. Okay, so this one may be harder because they can't use existing tools, although I can't see it as being any more difficult than converting Word to Kindle.